Counterclaims; tests to determine if compulsory. Going now to the first assigned error, petitioner submits that its counterclaim for the rentals collected by Fernando from the CMTC is in the nature of a compulsory counterclaim in the original action of Fernando against petitioner for annulment of bid award, deed of absolute sale and TCT No. 76183. Respondents, on the other hand, alleged that petitioner’s counterclaim is permissive and its failure to pay the prescribed docket fees results into the dismissal of its claim.
To determine whether a counterclaim is compulsory or not, the Court has devised the following tests: (a) Are the issues of fact and law raised by the claim and by the counterclaim largely the same? (b) Would res judicata bar a subsequent suit on defendant’s claims, absent the compulsory counterclaim rule? (c) Will substantially the same evidence support or refute plaintiff’s claim as well as the defendant’s counterclaim? and (d) Is there any logical relation between the claim and the counterclaim? A positive answer to all four questions would indicate that the counterclaim is compulsory.
Tested against the above-mentioned criteria, this Court agrees with the CA’s view that petitioner’s counterclaim for the recovery of the amount representing rentals collected by Fernando from the CMTC is permissive. The evidence needed by Fernando to cause the annulment of the bid award, deed of absolute sale and TCT is different from that required to establish petitioner’s claim for the recovery of rentals. The issue in the main action, i.e., the nullity or validity of the bid award, deed of absolute sale and TCT in favor of CMTC, is entirely different from the issue in the counterclaim, i.e., whether petitioner is entitled to receive the CMTC’s rent payments over the subject property when petitioner became the owner of the subject property by virtue of the consolidation of ownership of the property in its favor. Government Service Insurance System (GSIS) vs. Heirs of Fernando P. Caballero, et al., G.R. No. 158090, October 4, 2010
Docket fees; GSIS not exempt from payment. Petitioner [GSIS] further argues that assuming that its counterclaim is permissive, the trial court has jurisdiction to try and decide the same, considering petitioner’s exemption from all kinds of fees.
In In Re: Petition for Recognition of the Exemption of the Government Service Insurance System from Payment of Legal Fees, the Court ruled that the provision in the Charter of the GSIS, i.e., Section 39 of Republic Act No. 8291, which exempts it from “all taxes, assessments, fees, charges or duties of all kinds,” cannot operate to exempt it from the payment of legal fees. This was because, unlike the 1935 and 1973 Constitutions, which empowered Congress to repeal, alter or supplement the rules of the Supreme Court concerning pleading, practice and procedure, the 1987 Constitution removed this power from Congress. Hence, the Supreme Court now has the sole authority to promulgate rules concerning pleading, practice and procedure in all courts.